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HomeMy WebLinkAbout11-12-13 Story Mansion.pdfPage 1 of 3 Bozeman Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Chris Kukulski, City Manager SUBJECT: Consider Proposals received from groups seeking to Purchase or Obtain by Gift the Story Mansion and Associated Property at 811 South Willson Avenue MEETING DATE: November 12, 2013 AGENDA TYPE: Action RECOMMENDATION: Consider proposals received for the Story Mansion and associated property and authorize the City Manager to move forward with the preferred proposal. RECOMMENDED MOTION: I move to authorize the City Manager to proceed with the steps necessary to negotiate a purchase or gifting agreement with [choose one] for transfer of ownership of the Story Mansion and associated property located at 811 South Willson Avenue. BACKGROUND: On February 25, 2013 the City Commission adopted their 2013 - 2014 priorities. One of the identified priorities was to develop a permanent plan for the Story Mansion. On April 8, 2013 the City Commission considered options to accomplish that goal and passed the following motion unanimously: Vote on the motion to direct the City Manager to investigate options one and two presented in this memorandum and develop a permanent plan for receiving proposals for the sale of the Story Mansion which could include either a private sale under the selling at no less than 90% of appraised value or proposals consistent with the previous proposal to a nonprofit. (link to minutes) Option one within the April 8th memorandum was to sell the Story Mansion by negotiated sale without relying on the historically significant building provisions of Sec. 2.06.870.D, BMC, thus selling at no less than 90% of appraised value. Option two was to repeat the request for proposals process used in 2011 wherein the City solicited proposals from non-profit organizations and other groups interested in purchasing the Story Mansion. Further Commission direction during the April 8th meeting indicated that proposals would be accepted until a suitable buyer was selected for negotiation, but that initial review would take place on all proposals received no later than 5 p.m. August 28, 2013. A request for proposals was advertised in the Bozeman Daily Chronicle legal section multiple times and uploaded to the city of Bozeman website in the news section and the Bids/Projects page of the website. Four 267 Page 2 of 3 proposals were received by the preferred August 28th deadline. Submitters include: The Bozeman Art Museum - primary contact Linda Williams The Montana Center for Civics Engagement - primary contact Robert Hawks The Story Mansion Inn Group - primary contact Jim Klug Tree of Life Ministries - The Portal School of Creativity & Innovation - primary contacts Matt and Lisa Weaver At this time, staff would recommend that the City Commission decide which proposal they would prefer to move forward with, thus moving closer to accomplishing the goal of a permanent plan for the Story Mansion. Further background information regarding current property restrictions on the Story Mansion and the history of Commission actions related to the City’s ownership and restoration of the Story Mansion can be found in the April 8, 2013 memorandum to the Commission. The Community Development Department has also prepared a zoning / use analysis per proposal for your consideration (see attachment). FISCAL EFFECTS: Each proposal would have different fiscal effects which are outlined below. Staff would recommend that any money received for the Story Mansion is placed in the general fund as we currently have substantial revenue needs in the general fund and anticipate more in the near future. Submitter: Purchase Offer: Related Fiscal Conditions: The Bozeman Art Museum Option 1 Gift Grant money waiting to be released with acquisition could go towards renovation. Further renovation money to be raised / secured. The Bozeman Art Museum Option 2 $400,000 Grant money waiting to be released with acquisition. Renovation money to be raised / secured. The Montana Center for Civics Engagement $400,000 on a gifting/purchase contract Renovation money to be raised. Deposit of title with the Montana History Foundation to be held in trust. City would provide grounds maintenance. The Story Mansion Inn Group $500,000 to $900,000 Initial payment of $500,000 upon closing. After renovations (estimated to take two years) all renovation and construction costs exceeding $1,100,000 would be deducted from the remaining $400,000 owed. Tree of Life Ministries, Portal School of Creativity & Innovation Fair Market Value (anticipated by submitter at $2,600,000) None 268 Page 3 of 3 ALTERNATIVES: As suggested by the City Commission. ATTACHMENTS: Story Mansion Zoning/Use Analysis from the Community Development Department The Bozeman Art Museum Proposal The Montana Center for Civics Engagement The Story Mansion Inn Group Tree of Life Ministries Portal School of Creativity and Innovation Report compiled on September 4, 2013 by Aimee Brunckhorst on behalf of Chris Kukulski 269 STORY MANSION PROPOSAL ZONING/USE ANALYSIS Organization Proposed Use: Mansion Proposed Use: Carriage House Zoning Use Compliance Other Zoning Issues Discretionary Approval Process Timeline Bozeman Art Museum Fine Art Museum Office Community Center Conditional Use Permit approved on July 20, 2009* Parking, delivery zone, and neighborhood compatibility for evening events Estimate: four to six months for modification of existing CUP Montana Center for Civic Engagement Not adequately specified in Proposal Not adequately specified in Proposal Community Center Conditional Use Permit approved on July 20, 2009** Parking and neighborhood compatibility for evening events Estimate: four to six months for modification of existing CUP Story Mansion Inn Group 17 overnight guest rooms, wine bar and limited dining for guests and the general public Special Event receptions 6 overnight guest rooms with meeting and conference space Overnight accommodation, dining establishment and for- profit owned community meeting space are not a principal, conditional or accessory use in the R-1 Zone District Use would require the approval of a Planned Unit Development to allow an inn, wine bar and dining use. Parking, delivery zone and neighborhood compatibility for evening events Estimate: four to six months Preparation of submittal material by applicant: one to two months Tree of Life Ministries – The Portal School of Creativity and Innovation Classrooms and Conference Facility, primary use time in the evening Classrooms and Conference Facility, primary use time in the evening Community Center Conditional Use Permit approved on July 20, 2009* Parking and neighborhood compatibility for evening events Estimate: four to six months for modification of existing CUP * The City of Bozeman was granted a Conditional Use Permit, Z-09022, for a Community Center that would utilize the first floor of the mansion only. The CUP runs with the land and all future users of the property would be responsible for ensuring the conditions of approval are met. ** Future use of the site by Montana Center for Civic Engagement may require modification of the approved CUP. Submittal information did not specify building usage. 270 BOZEMAN ART MUSEUM City of Bozeman P.O. Box 1230 Bozeman, MT 59771 RE: Story Mansion Purchase Proposal 2013 1) Who We Are The Bozeman Art Museum was incorporated in January of 2012 and received 501(c) 3 designation in April of that same year. In our first year of operation we have assembled a highly qualified national board of directors, (see attached) and developed a strategic plan for the founding and operation of a fine art institution in Bozeman. This year Bozeman Art Museum has filed grant applications and produced an exhibit for the public of nationally recognized art on Main Street for Art Walk Night (see Bozeman Daily Chronicle July 12, 2013 and Bozeman Art Museum Facebook page). The Bozeman Art Museum’s vision is to become the brightest beacon of art and arts education, known throughout the American West. We feel there is no better building to house a community asset like our art institution than the historical and beloved Story Mansion. The primary contact person is Linda Williams at 10573 Kelly Canyon Rd. in Bozeman, MT 59715 with a telephone number of 406-570-1419 and an email address of williamsart52@yahoo.com. 2) Purchase Offer The Bozeman Art Museum proposes two purchase options. One option is to request that the City gift the Story to the Bozeman Art Museum. The Museum has grant money waiting to be released to us with the acquisition of a building. With the gift of the Story Mansion, those monies can be put to immediate use on renovation and operational costs. The Museum will be a community enrichment owner/occupant that will serve Bozeman and the region for generations to come. The Story Mansion is a community asset and should be accessed by the public as easily as the park grounds around it. We will meet the City’s goal of public access to this historic treasure by being open to the public 6 days a week, as well as having regularly scheduled ‘free admission’ days throughout the calendar year. The museum offers both cultural and financial enrichment through our art and education programs, jobs, and as a tourist destination; all of which add qualitative if not quantitative community benefits in exchange for the ‘gift’ of the Story. If the City cannot gift the property to the Museum, we are prepared to offer $400,000. 3) The Plan 271 The Story Mansion is a community treasure and the Museum will be its proud steward. The mansion will be a community anchor that brings lively, interesting and enriching art programs to a population that values art in society. The Museum will file for a conditional use permit with the City to house our institution in the Mansion. The Mansion will be renovated to house our permanent collection and numerous travelling exhibitions. The main galleries will be on the second and third floors, with the first floor being mainly a reception area with some exhibition space. We will renovate the remaining areas of the basement for storage. Our goal is to configure the museum so that the first floor reception areas of the Story remain a rentable option for public use while also meeting the Museum’s security requirements. The carriage house will be renovated throughout. The first floor will house administrative offices, meeting rooms, and support space. The second floor will be configured with flexibility in mind and will contain our educational programs. The interior barn-like character of the second floor will be maintained as a spectacular feature of the space. Wall partitions will be moveable so that the entire second floor could be open for large events, or divided into smaller spaces for instructional programs and exhibits. The carriage house renovation will meet all federal, state and local laws and historical guidelines, and meet ADA accessibility. Our educational program will provide opportunities for students of all ages and abilities. With a strong teaching force in Bozeman that we can draw on, we can create an instructional curriculum for a range of learners, beginners through advanced. Ongoing lessons for different age groups will be scheduled along with specialized short term workshops. Lectures by local and national artists will be made available for the public and will be integrated with the art exhibitions. The renovation process for the Mansion and the Carriage house will include hiring a local architectural firm familiar with historic renovation, meeting with the city to address local guidelines, and securing private donations and federal and state grants for renovation and construction costs. Because the City has already skillfully accomplished a lot of the infrastructure, some ADA compliance and renovation work of the Story, the first floor and basement are available for immediate use by the Museum. With some logistical, permitting, and security issues addressed, the Museum can quickly open its doors to serve the public as an exhibiting and educational institution of the ground floors, while work on the upper floors is designed, permitted, and constructed. Timeline: Preparing the historically appropriate designs for renovation, finding solutions for ADA requirements for both buildings, and securing the appropriate construction permits for the Story and its carriage house is a one to one and a half year process. Once permits have been secured, the preparation of construction documents and time under construction will take another two to three years. Our goal is to have completed substantial renovation and construction work in four years from ownership, and have another two years of secondary non-critical work thereafter. When and where possible we will phase and direct renovation work to expedite completion of interior spaces which will allow the Museum greater functionality. During this time the Museum 272 will be offering educational programs and hosting art exhibits at the Story as long as public safety requirements can be met. As a public institution located in a residential neighborhood we will be mindful of our neighbors during construction, and as an institution bringing the public into a residential area. The Museum recognizes the responsibility of restoring, renovation, and creating ADA compliance for these historic buildings, and we do not take it lightly. The Story Mansion and adjoining carriage house are the ‘jewel in the crown’ of Bozeman’s Bon Ton historic district, as well as a state treasure. There is a sense of community ownership and pride in the Story, and the Museum recognizes that sense and wants to continue the Story’s legacy as a responsible owner and community resource. The grounds around the Story are a City park and the Museum embraces that use of the lands. We see a continuation of existing uses, including movies on the lawn, and new uses relating to Museum events. Our mission is to make Bozeman a destination for fine arts and arts education. We intend to work alongside the existing arts organizations to enhance the arts opportunities that are already available. We feel that, as stated in our Sept. 24, 2012 letter to the City Commission, the Story Mansion would be an excellent match for our purposes. Our intention is to create a destination fine art museum that will be an enduring treasure to the city, state, and nation. We would like to sponsor the Western Rendezvous Art Show in Bozeman, as it has ceased in Helena. This is a national show that has been in existence for 34 years. The show would have to be off site from the Story as it is a very large show, but would also bring visitors to the Bozeman Art Museum during the 4 day event. We also plan to work with Humanities Montana on the publication of books on art which would coincide with specific exhibitions. 4) Means Our Board of Directors is gathering the funds to obtain ownership of and preservation of the property, and the restoration of the Carriage house and the second and third floors of the Mansion. We feel comfortable with our offer, along with the realization of the approximately 1.5 million dollars needed for the renovation. The Museum is undergoing a capital fund raising effort and developing a membership base. We want to move forward with the Story Mansion and carriage house as our home. The Bozeman Art Museum would be honored to preserve, maintain and restore this grand and historic property and accept this responsibility mindfully. We understand that we would need to comply with all requirements of the two easements that have been placed on the property. We also understand that as an entity seeking to obtain the property by reduced price, we would be subject to a reversion to the City for noncompliance with conditions attached to its transfer. We understand that the city makes no representations or assurances regarding any aspect or condition of the Property. We are aware that the buildings may contain asbestos or other environmentally 273 sensitive substances. We would be solely responsible for compliance with all federal, state and local laws concerning these substances, if any. We will not discriminate on the basis of race, color, religion, creed, sex, age, marital status, national origin, or because of actual or perceived sexual orientation, gender identity or disability. This prohibition on discrimination shall apply to the hiring and treatment of our employees and all subcontracts. We realize that this relationship with the City would not be a partnership or a formal business organization of any kind between or among the City and the Bozeman Art Museum. We save and hold the City harmless with respect to any and all claims for payment, compensation salary, wages, bonuses, retirement, withholdings, worker’s compensation and occupational disease compensation, insurance, unemployment compensation, other benefits and taxes and premiums in any way related to our officers, employees, contractors and consultants. 5) Good Faith Negotiations The Bozeman Art Museum agrees to enter into good faith negotiations regarding a purchase and sale agreement that will include terms as identified in the RFP and those established by the Bozeman City Commission. We at the Bozeman Art Museum believe that best use and service to the public interest of the Story Mansion would be the founding of a fine art museum. There is a strong history in the United States of mansions being made into fine art museums, such as the Maryhill Museum of Art, the Strathmore, and the Bellamy Mansion. With the Story Mansion being one of only 3 full- block mansions in the state of Montana, we believe that a fine art museum would be a jewel in the crown of the City. We will attract and retain the best and brightest in the traditional arts field while building strong relationships with the regional educational institutions. We will offer exhibits and programming relevant to diverse audiences while being good stewards of our finances. We will have a commitment to excellence and professionalism. The Bozeman Art Museum is a member of the American Alliance of Museums, the Museums Association of Montana, the Montana Nonprofit Association and the Bozeman Chamber of Commerce. We have included letters of support from Thomas Nygard of the Nygard Gallery in Bozeman, Bruce Whittenberg of the Montana Historical Society in Helena, and Benjamin Pepka of the Holter Museum of Art in Helena. 274 275 276 277 CURRENT BOARD MEMBERS Board of Directors National Advisory Board Ilene Kitahara, Chairman Benjamin Pepka Helena, MT Linda Williams, Vice-Chairman James M. Gutting, J.D., CPA Marsha Paulson, MBA Treasurer Indianapolis, IN Cynthia Meeker, Secretary Heather Cromwell, MA Carol Hartman, MA Dr. Daryl Paulson, Ph.D., MBA Daniel Hitchcock Maria Sorce Westland Troy Redmon, J.D., MBA Nyda Gilbertson Barbara Kilbride McGowan 278 279 280 281 282 283 284 285 286 The Story Mansion Inn Project A Proposal to Purchase the Story Mansion by August 28, 2013 287 | 1 Table of Contents City of Bozeman Request for Proposal Guidelines .................................................................................................. 2 Special Note............................................................................................................................................................................. 3 Introduction ............................................................................................................................................................................ 4 Concept Summary Story Mansion Inn ......................................................................................................................... 5 A Brief History of the Story Mansion ............................................................................................................................ 6 Preserving the Story Mansion Property ...................................................................................................................... 8 Factors to Consider Regarding Future Use and Development of the Story Mansion Property ............ 8 The Adaptive Re-Use Approach for the Story Mansion ..................................................................................... 11 2004 RSBA Feasibility and Market Study for the Story Mansion Inn Bozeman, MT ............................. 13 Purchase Offer..................................................................................................................................................................... 15 Additional Offer/Ideas from the Story Mansion Inn Group ............................................................................. 16 Purchase Contingencies .................................................................................................................................................. 17 Purchasing Entity’s Legal Name .................................................................................................................................. 18 Financial Information ...................................................................................................................................................... 18 Schematics for the Proposed Story Mansion Inn ........................................................................................... 19-23 288 | 2 City of Bozeman Request for Proposal (R.F.P.) Guidelines Each entity interested in obtaining the Property must submit a written proposal and provide or demonstrate the following: 1. A narrative describing the purchaser or entity’s legal name, primary contact person, address, telephone number and email address. 2. The submitting entity’s suggested purchase price and whether the submitting entity proposes to purchase the Property at a market price or seeks to obtain the Property as a gift or upon reduced purchase price. 3. A detailed plan for current and future use of the Carriage House, the Mansion, and the grounds within the confines of existing zoning requirements. The plan must include how the Property will be preserved and restored and a timeline for restoration accompanied by a statement indicating the submitting entity agrees to restore and preserve the Property subject to all federal, state, and local easements or restrictions for historic preservation and all applicable building codes. 4. The submitting entity has sufficient funds to obtain ownership of and preserve the Property, and restore the Carriage House and the second and third floors of the Mansion. 5. That the submitting entity agrees to enter into good faith negotiations regarding a purchase and sale agreement that will include terms as established by the Bozeman City Commission. Deadline for RFP Submissions: August 28, 2013 – 5:00 PM 289 | 3 Special Note Much of the information, data and facts used in this proposal is information and writings found in the following documents and on the following websites: “COMMA Q ARCHITECHTURAL ASSESSMENT OF THE STORY MANSION” (Commissioned and released by the City of Bozeman in 2003 and authored by Comma Q and historic preservation consultant B. Derek Strahn.) “FEASIBILITY AND MARKET STUDY FOR THE STORY MANSION INN BOZEMAN, MONTANA” (Prepared by RSBA & Associates San Francisco, California April 8, 2004) “STORY MANSION TRUST TASK FORCE” (Meeting notes and minutes from May 2004) “CITY OF BOZEMAN ORDINANCE No. 1821” (April 9, 2012) “COMMA Q ARCHITECHTURAL ASSESSMENT OF THE STORY MANSION” CITY OF BOZEMAN ORDINANCE No. 1821” (April 9, 2012) 290 | 4 INTRODUCTION This document shall serve as a proposal by a group of local Bozeman business people (the Story Mansion Inn Group) to purchase the Story Mansion property from the City of Bozeman in order to renovate and completely refurbish the Mansion and Carriage House, turning the property into a high-end, high quality lodging facility. This historic inn would not only preserve the integrity of the Story Mansion property and structures, but would also become a major resource for the community of Bozeman, providing high-end accommodations, a large meeting and conference space, as well as special event and reception capabilities. Upon completion, the Mansion property would be transformed from its current state (unfinished, locked, dark and empty buildings) into a vibrant community asset; a culturally and historically-significant resource that would celebrate Bozeman’s past and the unique history associated with the property itself. The Story Mansion Inn would have the distinct advantage of being the most distinctive and upscale lodging facility in the entire Bozeman area, and would include the following: • Seventeen (17) private guest rooms with private bathrooms, including eleven (11) in the Mansion and six (6) in the Carriage House. • A large meeting and conference room located in the Carriage House. This 1,300-1,500 square foot meeting room would have the potential to host all types of business meetings, receptions and local events. • The main floor of the Mansion would include a full kitchen to offer breakfast services to guests, as well as a limited menu to the general public. There would also be a small wine bar with limited seating on the main level, open to both guests and to the public. • Full event hosting capabilities (inside and outside) to accommodate weddings, parties, retreats, corporate and business events, and all types of receptions. 291 | 5 • Full hospitality services and the ability to accommodate, host and organize different types of community events associated with the Mansion and the property. Examples of events might include an annual community Christmas Tree lighting, Easter egg hunts for children, Halloween events, music and movies on the lawn, and other events and gatherings that would be open to the public. CONCEPT SUMMARY STORY MANSION INN The Story Mansion Inn would be a seventeen (17) room historic inn located in the heart of the Bon Ton Historic District in downtown Bozeman. Unlike a typical bed and breakfast operation, the Inn would have full amenities for the most demanding traveler, including high quality furnishings and beddings, a full breakfast service for guests, high speed internet access, a wine bar with a limited evening food menu, and full conference and meeting facilities. This operation would be the most upscale and historic lodging property in all of Gallatin County, and perhaps all of Montana. The historic buildings would be preserved, the history of the Mansion would be celebrated and prominent, and the Mansion itself would become a premiere fixture in the Bozeman community – completely renovated and open to the public, instead of being locked and dark more than 95% of time. This project would place the Story at the center of community activity and be a major contributor to the local economy, a major asset for visitors, alumni and visiting parents from nearby Montana State University, and a major draw for other visitors to the Bozeman area seeking luxury accommodations and a setting different from the current chain and large-brand hotels and motels. With the scenario that we are proposing, the City of Bozeman recovers a portion of the initial investment in Story Mansion, achieves public relations success and diminishes future risk. The City keeps the open space on the city block as a significant city park located in the major historic district of downtown Bozeman. And finally, Bozeman gets a high-end historic hotel (that definitely fills a void in our town) while at the same time gaining a new community asset that can be enjoyed and celebrated by all. 292 | 6 It is important to note that the Story Mansion Inn Group - over the past twelve months - has thoroughly researched the building and understands the process, procedure, and financial commitment that is required to complete a project of this nature. We've already met with architects, engineers, contractors and other individuals that would be involved with renovating and completing this project, and we have a solid and realistic plan for moving forward. A BRIEF HISTORY OF THE STORY MANSION Paraphrased from the “Assessment of the Story Mansion,” commissioned and released by the City of Bozeman in 2003 and authored by historic preservation consultant B. Derek Strahn. In 1910, local contractor John Scahill completed a beautiful mansion and carriage house at 811 South Central (now Willson Avenue) for Thomas Byron Story, an influential local businessman. T. B. Story was the son of Nelson Story Sr., a tremendously successful gold miner, cattle rancher, and entrepreneur, who is widely regarded to be Montana’s first millionaire. The younger Story lived with his wife and five children in the grand residence until 1924, when he sold the property to the Sigma Alpha Epsilon fraternity. Beginning in the 1990s, the SAE fraternity attempted to sell the mansion, due to declining enrollments and a corresponding inability to keep up the maintenance of the sizable property. Several parties considered purchasing the property, contemplating a wide range of possible outcomes for this National Register of Historic Places listing. Proposed options included outright demolition of the mansion, demolition and reconstruction of the mansion with non-historic materials and the subdivision of the property for the creation of nine new home sites. Desiring a more historically sensitive outcome for the property, the City of Bozeman purchased the property from the SAE fraternity in April of 2003 for $1,316,489. Shortly after the City’s purchase of the Story mansion, the possibility of federal financial assistance emerged. Montana’s United States Senators at the time—Conrad Burns and Max Baucus—pledged to help secure federal funding for the rehabilitation of the property. The City of Bozeman, encouraged by the possibility of federal support, commissioned and prepared a 293 | 7 complete architectural assessment of the Story mansion to document the existing condition of the property at the time. Since the purchase in 2003, there has been approximately $2.2 million invested into restoring the Property, including renovations to the first floor, basement, and exterior of the Mansion. It is important to note that a large portion of these funds used for restoration have included various federal and state historic preservation grants. As a condition of these grants, the selected purchaser must comply with all requirements of two easements that have been placed on the property. The first is a 50-year easement with approximately 46 years remaining and the second is a five-year historic preservation easement with the State of Montana with approximately one year remaining. It is also important to note that the full city block that was included in the original purchase was subsequently divided into two separate lots, with the majority of the Mansions yard and lawn area being converted to a City park. In April of 2012, the City of Bozeman passed, adopted and approved an agreement to sell the Story Mansion to Exergy Friends of the Story for the total cost of $391,222.00, with the stipulation that the group pay this amount in cash to the City upon closing. (Reference: City of Bozeman Ordinance #1821.) As part of this agreement, Exergy Friends of the Story agreed to certain conditions, including: 1. An Expenditure Cap dictating that $1,500,000.00 would be spent for improvements to the property (i.e. to complete the desired renovation projects) 2. A goal of competing two of three required renovation projects (rehabilitation of the Mansion’s second floor, rehabilitation of the Mansion’s third floor, and rehabilitation of the Carriage House) 3. An established timeline to complete this work of five years from the closing date. (City of Bozeman Ordinance #1821.) In late February of 2013, Exergy Friends of the Story Mansion notified the City of Bozeman that the group was unable to get a major donation from Exergy Development Group, LLC., by the city’s February 28, 2013 deadline and would subsequently not be able to pay the $390,222 balance on the purchase price. On April 8, 2013, the Bozeman City Commission voted unanimously to find Exergy Friends of the Story Mansion in default of its agreement to buy the mansion and to 294 | 8 terminate the contract. Commissioners directed city staff to research all other options for selling the 113 year-old property, and an RFP was subsequently issued by the City. PRESERVING THE STORY MANSION PROPERTY According to a published Assessment of the Story Mansion released by the City of Bozeman in 2003, “historic preservation is a critical component in shaping the character and appearance of daily life in Bozeman, Montana. Bozeman’s older buildings, structures, landscapes, and districts contain much of its culture and history. Lending grace, dignity, and beauty to our modern living environments, historic properties provide residents and visitors with important and, in some cases, irreplaceable connections to our past. Historic sites comprise the heart of our community and serve as vital benchmarks for our local identity. They decorate and enrich our lives while also making significant contributions to our local economy. We should, therefore, strive to preserve the T. Byron Story property and the many other historic components that are essential in defining Bozeman’s quality of life.” FACTORS TO CONSIDER REGARDING FUTURE USE AND DEVELOPMENT OF THE STORY MANSION PROPERTY Information below is listed and referenced from the “Assessment of the Story Mansion” report commissioned and released by the City of Bozeman in 2003 and authored by historic preservation consultant B. Derek Strahn. The T. Byron Story property is and always has been a significant tourist draw. Even though the Mansion has been locked and shuttered the majority of the time for the past ten years, it still draws visitors and locals who love to view the Mansion and walk the grounds. There is no doubt that Bozeman’s economy is incredibly reliant upon tourism and visitors, and many of these tourists consistently mention that history is one of the principle reasons that they travel to the 295 | 9 area. A great line in the 2003 Story Mansion Assessment correctly stated that, “People do not journey great distances to shop at Wal-Mart or Costco … nor do they typically travel great distances to enjoy a generic historic appearance. Most tourists have these attractions in their own communities.” Rather, they travel to have a new experience, to enjoy local color, and to experience the authentic offerings of an area or a community. The Story Mansion property is hands-down one of the most unique historic resources in all of Bozeman, and the transformation of the property into a successful and profitable historic inn operation would not only save the Story structures and complete renovations of the buildings, but would also allow the City of Bozeman and the community to enjoy economic benefits in the form of even more visitors and additional tax revenues generated by the Inn as a business. Together, Bozeman’s historic, cultural and natural amenities provide an extremely attractive marketing ‘hook’ and create reasons for people to visit. Once visitors arrive, their expenditures for travel and tourism positively impact transportation, lodging and eating establishments, as well as numerous retail and service businesses. Combined, these expenditures support jobs, personal income, and government tax revenues in the Bozeman area. And while “heritage” tourism is directly related to this, the existing hotel and lodging options in the Bozeman area are limited to motels, chain hotels and “big box-type” business hotels. With the recent closure of the Gallatin Gateway Inn (and with the exception of a few small Bed and Breakfast operations in town) there is not a single historic hotel or lodging option in the area. Since the 1980s – when the City of Bozeman established one of the largest Conservation Overlay Districts and historic design review programs in the nation – the City has actively promoted the maintenance, rehabilitation, and improvement of its historic built environments. This Story Mansion Inn proposal provides the best possible solution for the T. Byron Story Mansion – arguably the most historically significant structure in all of Bozeman. Since purchasing the property in 2003, the City of Bozeman has gone to great lengths to forever guarantee that the property would not fall victim to insensitive subdivision proposals. Over the last decade, potential buyers have proposed several historically insensitive options for redeveloping or demolishing the property. Thankfully none of these options materialized. Meanwhile this important National Register of Historic Places listing and its extensive surroundings have continued to sit unfinished and largely locked off to the Bozeman community. One of the options that HAS been discussed for the past ten years, however, is that the City could 296 | 10 eventually pass the property and the Mansion on to a future preservation-minded buyer for private ownership and operation. The Story Mansion Inn Group IS that preservation-minded buyer and – in our opinion – the City’s very best option for seeing the property fully and historically renovated while at the same time becoming a major resource for the entire Bozeman Community. There have been some critics who over the past ten years have argued that the City should not have spent limited resources on saving the Story Mansion. That said, future generations will no doubt remember and appreciate the fact that the Story mansion WAS saved and that the City subsequently gained a new public park in one of the most historically-significant neighborhoods in Bozeman. To complete the renovations and work required on the Mansion buildings, however, it will be necessary to invest a significant amount of funds and resources. To combine this fact with the desire to keep the Mansion open and accessible to the public, it will be necessary to sell the property to an entity that is willing to do this and that has the capability and capacity to do this. The Story Mansion Inn Group is the answer. In terms of sheer size and grandeur, this irreplaceable and much-admired property is without equal in all of Southwestern Montana. Few historic resources are as visually impressive or occupy such a prominent location as the Story. This is in part because it is one of a few surviving historic mansions in Montana that graces an entire city block. Together, the Mansion, Carriage House, mature trees, and surrounding grounds collectively reinforce the historic character and uniqueness of the site. To be able to turn this now-empty, decaying structure into a vibrant, active and thriving community resource and functioning inn would enable visitors and residents alike to fully appreciate and embrace the value of the overall property. Much like the famous lodges and hotels in Yellowstone and Glacier National Parks, the Story Mansion Inn would be a major draw for visitors to the area. To stay in the heart of downtown Bozeman and enjoy the ambiance, hospitality and history of the Mansion would no doubt be a major attraction for tourism and a great addition to what Bozeman as a community and a destination currently offers. Most new hotels and commercial buildings built today in Bozeman are indistinguishable from those being constructed elsewhere. Our community is quickly becoming a city of chain businesses and corporate branding. The Story Mansion – as a functioning and thriving high-quality inn – would stand out as an exception. The Story family name is a cornerstone of Bozeman history. And in addition to the family history and link, this stately home on South Willson is one of the last 297 | 11 physical examples of the era. The Mansion is a community icon that many believe to be irreplaceable. THE ADAPTIVE RE-USE APPROACH FOR THE STORY MANSION The Story Mansion is an excellent candidate for adaptive re-use—the process of modifying older buildings for new uses while retaining their historic features. The relevance and functional life of a historic property can be significantly limited when its use is confined in scope. And, when a historic property no longer plays a contributing role in a community, it becomes at risk. When an original use is no longer of interest or practical, it becomes unreasonable to demand that concerned parties perpetuate that use. At times, new uses must be explored and seriously considered. The reality is this: most buildings, like people, have dynamic histories. They shift from one role to another, and oftentimes this process of change reinvigorates the person or the place. When old buildings outlive their original purposes, they can commonly be adapted to new uses without losing their original character and significance. Oftentimes, they must adapt or face demolition. An excellent example that demonstrates this fact is Bozeman’s Emerson Center for the Arts and Culture. Once an elementary school that was slated for demolition because it no longer met safety standards for educational facilities, the Emerson was transformed into a focal point for artistic and cultural activity in southwestern Montana that contributes significantly to the vibrancy of downtown Bozeman in productive and previously unimagined ways. The same could hold true for the Story Mansion. While retaining the mansion’s unique, character-defining features should always remain a top priority; creative thinking regarding new and innovative uses for this one- of-a-kind landmark can help ensure the Story Mansion remains a vital and contributing element in our ever-modernizing community. This is the pragmatic spirit of historic preservation, and those interested in saving the Story Mansion should seriously consider its merits. 298 | 12 To this end, a number of studies and assessments have been commissioned and conducted by the City of Bozeman over the past ten years regarding the best use for the Story Mansion structures and property. With the participation of community members, neighborhood members, and several task forces organized by the City, a list of “best practices and best use” standards has – over time –emerged. It has been suggested that these Standards, which include those summarized below, be applied to specific rehabilitation projects (most notably the Story Mansion) in a reasonable manner, taking into consideration economic and technical feasibility: 1. The property shall be used for its historic purpose or be placed in a new use that requires minimal change to the defining characteristics of the building and its site and environment. 2. The historic character of the property shall be retained and preserved. 3. Distinctive features, finishes, and construction techniques and examples of craftsmanship that characterize the property shall be preserved. 4. Deteriorated historic features shall be repaired rather than replaced. Where the severity of deterioration requires replacement of a distinctive feature, the new feature shall match the old in design, color, texture, and other visual qualities and, where possible, materials. On July 12, 2003 the Montana Preservation Alliance led a day-long workshop at the Story Mansion to solicit ideas and approaches regarding local needs and future uses of the property from a cross section of the Bozeman community. The workshop was attended through the day by about 25 participants with diverse backgrounds in architecture, planning, finance, fine arts, hospitality, education, business and history. Neighborhood residents, members of the local and county historic preservation boards and the Story Mansion Trust all took part in the sessions and contributed valuable perspective in defining the “vision” for the property moving forward. • Preserve/Restore the Mansion and Grounds • Preserve the Open Space • Define Space for Public Activities and a Variety of Community-Centered Uses • Establish Public Gardens/ Cultivate Park-Like Setting • Develop Interpretive/Educational Programming 299 | 13 • Bring Back a Sense of Life & Vibrancy • Maintain Site as Source of Community Pride • Establish Public Accessibility • “It is Bozeman’s house...” We would put forth the argument that converting the Story Mansion into a high quality; full service inn operation would both maintain and promote this overall vision. 2004 R.S.B.A. FEASIBILITY AND MARKET STUDY FOR THE STORY MANSION INN BOZEMAN, MONTANA The concept and idea of turning the Story Mansion into an inn is by no means a new idea, and in fact in 2004, the City of Bozeman commissioned RSBA & Associates of San Francisco, California to complete a study to determine the feasibility of converting the property into a high-end, high-quality hotel and inn operation. The principal objective of this analysis was to determine if the conversion of the property to a lodging facility would offset the required upkeep of the building and grounds and provide a profit opportunity for a third-party operator. RSBA’s findings confirmed that the development of an inn should be seriously considered to meet these objectives and that a historic and heritage hotel option offered the best probability for protecting the historic Story Mansion. Regional examples cited in the study included Goldsmith’s Inn in Missoula, and numerous other inns and historic hotels outside of Montana as listed in the Historic Hotels of America (National Trust for Historic Preservation) and the Small Luxury Hotels Registers. The findings of the RSBA study included the following: • This adaptive re-use would preserve a historic Bozeman treasure and create a sense of life in the Story Mansion, it would maintain the special nature of the current historic residential neighborhood, and it would fill the void for an upscale hotel product in 300 | 14 Bozeman. All of these are desired results by residents in the neighborhood. • The Story Mansion is feasible as an overnight stay facility. The Story Mansion and its Carriage House could yield 17 guest rooms with private bathrooms, 1,300 square feet of dedicated meeting and function space, kitchen, public restrooms, plus public areas (dining room, entry area, library, and living room). A significant renovation of the building would have to be completed to achieve this configuration. • There is a shortage of high quality function and meeting space in the Bozeman competitive market. The Story Mansion Inn would provide the most historically-unique, quality meeting location in the entire Bozeman area. • Additionally, the Story Mansion’s grounds are suitable for private events, and there is definite pent-up demand for social event sites (weddings, receptions, etc.) in the Bozeman area. • The site is zoned residential, so any conversion of use to become an inn or hotel would require a change-in-use permit from the City of Bozeman. • The Story Mansion is foreseen as a quiet sanctuary, which encompasses all of the components of a residential inn. The property’s location within a park-like setting and surrounded by a residential neighborhood clearly differentiates it from other more commercial hotel outlets in the Bozeman area. • There is adequate parking for inn guests. The RSBA Assessment concluded with the following statement: “The City of Bozeman acquired the Story Mansion in response to its citizens desire to preserve urban space and the historic integrity of the Bon Ton Historic District. The principal objective of this analysis was to determine if the conversion of the property to a high quality lodging facility would offset the required upkeep of the building and grounds and provide a profit opportunity to a third- party operator. In our view, the development of an inn should be seriously considered to meet these 301 | 15 objectives. This adaptive reuse would preserve a historic Bozeman treasure and create a sense of life in the Story Mansion, it would maintain the special nature of the current historic residential neighborhood, and it would fill the void for an upscale hotel product in Bozeman.” PURCHASE OFFER • The Story Mansion Inn Group will offer the City of Bozeman $900,000.00 to purchase the Story Mansion property. (Designated as Lot 1A-1, Block 3). • The Story Mansion Inn Group will make an initial payment of $500,000.00 upon closing. • The Story Mansion Inn Group will place $10,000.00 into escrow for the deposit during due diligence and project entitlement, to be deposited at a local title company of the City’s choice. The Purchase and Sale Agreement will contain all representations, warranties, covenants, conditions and other terms and provisions standard to a transaction of this nature including but not limited to standard indemnification and risk of loss provisions. • The Story Mansion Inn Group will begin renovations and completion of the Mansion and the Carriage House, completing all three of the original three renovation projects (rehabilitation of the Mansion’s second floor, rehabilitation of the Mansion’s third floor, and rehabilitation of the Carriage House) as originally outlined by the City. The established timeline to complete this work (all three of the original three renovation projects) and have the Story Mansion Inn opened for business will be no longer than twenty four (24) months from closing date. • All renovation and construction costs that exceed $1,100,000.00 (not including the $900,000.00 purchase price); will be deducted from the $900,000.00 purchase price, thereby reducing the purchase price to the City. The purchase price will never be less than the $500,000.00 initial payment. o Example: If a total of $1,450,000.00 is spent on renovation and construction on the completion of the Mansion’s second floor, third floor and Carriage House, then 302 | 16 $350,000.00 would be deducted from the final amount due to the City, bringing the final purchase price to $550,000.00. o If a total of $2,000,000.00 is spent on renovation and construction on the completion of the Mansion’s second floor, third floor and Carriage House, then $400,000.00 would be deducted from the final amount due to the City, bringing the final purchase price to $500,000.00. o Furnishings and non-permanent and non-fixed hotel and lodge equipment will not be included in construction costs. A full list of all included and relevant costs would be provided and approved by both parties. ADDITIONAL OFFERS / IDEAS FROM THE STORY MANSION INN GROUP • The Story Mansion Inn project and partnership would commit to preserving and celebrating the historic nature of the property. Historic photographs of the Story Family, the Mansion, and of early Bozeman would be central to the interior decoration of the Inn and the conference room. • The Story Mansion Inn facility will include 1,300-1,500 of dedicated meeting space, making the property an ideal location for group bookings and local business meetings. These spaces would be available for both guests and for non-guests, including local businesses, community groups and MSU. The owners of the Inn would provide further access at no charge to the Story Mansion meeting facilities for members of the local community by donating twenty (20) days per year to local non-profit groups (for use for meetings, retreats or other events). • We envision that the Story Mansion Inn can and will become an incredible resource for future community events. We propose “hosting” and organizing a regular, year-round schedule of events and gatherings at the Mansion and in the Story Park, to such events as 303 | 17 a December Christmas tree lighting ceremony, visits with Santa, MSU homecoming or home game rallies, Easter egg hunts for children, Halloween functions, music events on the lawn, summer movies on the lawn, and more. It would be our goal to truly make the Story Mansion and the Mansion grounds a great community asset and a gathering place for all of Bozeman. • The Story Mansion Inn Group will be happy to meet with and receive feedback and participation from interested members of the [Exergy] Friends of the Story Mansion as well as relevant neighborhood and community groups as to the plans, design elements, and historical preservation elements of the Mansion and the property. PURCHASE CONTINGENCIES • Approval and acceptance of renovation and remodel plans (both interior and exterior) by the City of Bozeman, the State of Montana Historical Preservation Office, and the National Park Service. • Approval of a Planned Unit Development Application (P.U.D.) by the Bozeman City Commission that is specific to the Story Mansion Inn Project, location, property and business plan. This P.U.D. would allow the Story Mansion Inn to function as a full-service hotel and inn operation, in a R1 zoning district, with the capability to host events, sell limited food, wine and beer in a main level wine bar area that would be open to both guests as well as the general public. Hours of operation and other factors can be negotiated, taking into account current regulations and guidelines that have already been put in place by the City for current Story Mansion events and functions. The P.U.D. designation would allow the inn to operate in the capacity that would allow it to be successful, profitable and sustainable, without re-zoning the property. • Contingent upon final construction and operational cost analysis by the Story Mansion Inn Group based on property inspection, schematic plans, input from the State Historical Preservation Office, National Park Service and City of Bozeman Planning Department, and 304 | 18 input from neighborhood and community groups. • Contingent on an agreement with the city on the ability of the Story Mansion Inn to utilize on a regular and on-going basis a portion of the park lawn (notably the Southeastern section: South of the front sidewalk leading to the main entrance of the Mansion) for events, receptions, catered events, etc. that would be sold, booked, organized and operated by the Story Mansion Inn. A system could be put in place where events would be scheduled with the city and a portion of the park utilized by the Story Mansion Inn on a regular basis. • A final agreement on expanding the current parking area on the west side of the Mansion, (on the existing Story Mansion lot and not the park land) if required to accommodate the new use of the grounds as an inn and hotel. PURCHASING ENTITYS LEGAL NAME The group of investors interested in purchasing the property are operating under the working name of the Story Mansion Inn Group. The primary contact person is Jim Klug, 3232 Hillcrest Drive, Bozeman, Montana 59715. Phone: 406-581-6434. Email Address: jim@yellowdogflyfishing.com FINANCIAL INFORMATION Upon acceptance of our proposal, the Story Mansion Inn Group (SMIG) will provide a letter of credit and proof of sufficient funds from our local bank, and our investors showing / proving sufficient funds to complete the purchase, as well as all renovations and improvements to the property as outlined in this proposal. 305 | 19 SCHEMATICS FOR THE PROPOSED STORY MANSION INN Story Mansion Inn First Floor (Exhibit A) 306 | 20 Story Mansion Inn Second Floor (Exhibit B) 307 | 21 Story Mansion Inn Third Floor (Exhibit C) 308 | 22 Story Mansion Inn Carriage House (Exhibit D) 309 | 23 Story Mansion Inn Grounds (Exhibit E) 310 Story Mansion Purchase Proposal 2013 To City Commission of Bozeman, Montana TREE OF LIFE MINISTRIES AND THE PORTAL SCHOOL OF CREATIVITY & INNOVATION August 28, 2013 311 Mansion Purchase Proposal Tree of Life and Portal School of Creativity and Innovation We frequently ask people, “Why did you move to Bozeman, Montana?” After the typical answers of “Love the beauty,” “Love the feel of it,” and “Love the community life,” we discover that at the root of their reasons is this—they believed that here they have opportunity to see their dreams become reality. There is an ancient Hebrew proverb that says, “A longing fulfilled is a tree of life.” Tree of Life Ministries is a non-profit organization that exists to empower people to discover their purpose, fulfill their dreams, and enjoy meaningful, healthy relationships. Started seven years ago by Lisa and Matt Weaver, Tree of Life has developed a strong history of bringing effective programs to the community of Bozeman. These include relationship and conflict coaching, parenting classes, an employment preparation course for teenagers, and our popular class “Becoming a Powerful Person” taught annually in the jail and in LOVE INC. Training Center Beginning September 2013, the Tree of Life is expanding significantly through The Portal School of Creativity and Innovation. Our dream is to acquire the T. B. Story Mansion as the centerpiece of The Portal School of Creativity and Innovation. The facilities and grounds are well-suited to become a training center for local, national, and international students. The environment is brilliant for the quality of professionals we have attracted so far in acting, music, fine arts, film and business. Stimulating Economy The staff is growing rapidly for our post-secondary training program, including several professionals moving to Bozeman to teach film, acting, music, dance, entrepreneurial business, character formation, innovative thinking, collaboration—the list continues to grow. In addition, professionals in various fields of arts and entertainment, business, and leadership have agreed to teach via Skype, or come for short periods to do workshops and conferences. Community Our commitment to this community is to steward the Story mansion with excellence. Our experience in business the past eleven years has proven valuable in the stewardship of pristine, multi-million dollar homes. The mansion and carriage house interiors will be restored and equipped with state-of-the-art equipment, facilitating a creative learning environment and experience while maintaining the historic charm and beauty. Of particular benefit to Bozeman, we would be able to offer about ten times the twelve day minimum requirement stipulated for community access per year. The Story Mansion Property has a historical significance worth preserving. We are committed to seeing it restored and preserved. But our vision extends beyond maintaining a monument to the past. Tree of Life and Portal School of Creativity and Innovation desire to elevate this jewel of Bozeman’s history into a forward-looking legacy. 312 Fiscally Responsible Our proposal benefits the people of the City of Bozeman. We are not asking for a gift from the city. The immediate result is financial benefit to enhance the quality of life in Bozeman. We are committed to restoration and upkeep of the properties for long term. Training in creativity and innovation complement the DNA of our city and will enhance both the private and public sectors. Long term economic benefit will result as we achieve our long term goals, attracting world class instructors, staff and students. A Stronger City Our dream for the mansion is bigger that the Portal School. We love our city. We have personally lived in Bozeman 21 years demonstrating a long-term commitment to this community. Our dream is that we could partner with others leaving a legacy of a thriving community. We imagine a people empowered to see their dreams fulfilled through discovering who they are, strengthening in character, growing in creative skill, and flourishing in bold innovations. Our vision is for more than the old Story. We want to help create a new one. Respectfully, (Signatures on file) Matt and Lisa Weaver, for Tree of Life Ministries 209 Accola Drive Bozeman, MT 59715 313 Story Mansion Purchase Proposal 2013 1 ENTITY/PURCHASER Tree of Life Ministries, 501(c)3 The Portal School of Creativity and Innovation (DBA) PO Box 339 Bozeman, MT 59771 Matthew L. and Lisa R. Weaver 209 Accola Drive Bozeman, MT 59715 406.522.0038 (p.) 406.579.4982 (c.) info@theportalschool.com 2 PURCHASE PRICE PROPOSAL The non-profit entity “Tree of Life Ministries” proposes a purchase price of fair market value. Our intent is to recognize the original investment made by the people of the City of Bozeman in the 2004 purchase of $1,316,489. In addition, the taxpayers of Bozeman have made restoration investments to the T.B. Story Mansion of approximately $1.3 million, (by estimate). We anticipate, therefore, a purchase price of approximately $2,600,000. 3 PLAN FOR CURRENT AND FUTURE USE Tree of Life Ministries intends to utilize the Mansion, Carriage House and grounds as an Innovative Training Center (The Portal School of Creativity and Innovation). In addition, the facility and grounds will continue to be available as a premier Community Center for Bozeman. The mansion and carriage house will be renovated to provide more affordable and varied opportunities for community access. 314 3.1 INNOVATIVE TRAINING CENTER The Portal School of Creativity and Innovation exists to empower and train a new breed of innovators in business, art, and many other fields of occupation. The educational format is in two tracks: individual classes available to the community at large as well as full-time enrollment. Workshops and conferences will further utilize the generous facility spaces. 3.1.1 Part time participation from the community is encouraged. People have the option of signing up for evening classes, to be held in the Mansion and Carriage House, offered through the school year. These evening courses include a variety of topics focusing on creativity and innovation, including “Discovering Your Creative Genius,” entrepreneurial business, fine arts, film, music, photography, theater, acting, dance, etc. Current staff consists of two full-time and approximately ten part time, most of whom are residents of Gallatin Valley. Endorsements for our program have been obtained from a variety of professionals, some of whom will be teaching at the Portal School. 3.1.2 Full-time students participate in faith-based classes two days per week (core classes) plus four weeknights of classes per week (in six week blocks). In this pilot year, a second year of studies is being developed to provide for a two year option of study. Utilization of the Story Mansion would allow for the expansion of these classes in the same venue. 3.1.3 Further access for the community will be possible through workshops, concerts, shows and conferences associated with the Portal School. These will be held throughout the year, including the summer months. 3.2 COMMUNITY CENTER In addition we are committed to provide increased community access to the Mansion, Carriage House and grounds through such events as weddings, reunions, business and non-profit meetings, etc. The eight-month school schedule from early September to early May allows generous opportunity to schedule events currently facilitated through the City of Bozeman. Rental agreements would be handled privately, through our administration. (Due to the Public Park to the East and North of the Mansion, a system of 315 coordinating scheduling will need to be agreed upon with the City of Bozeman). 3.3 PROPERTY UTILIZATION PROPOSAL 3.3.1 Mansion Main Level The current configuration will be utilized for classes, meetings, celebrations, small music concerts, and so on, as it is presently used. 3.3.2 Phase 1 Restoration Upgrade the Mansion Main Level Kitchen. Restore Carriage House Main Level for offices, small educational spaces, restrooms, and small theater/lecture/movie space. Restore Carriage House Upper Level for basic occupancy as dance studio, large lecture hall, acting studio, etc. Upgrade and restore Main House Basement spaces as needed for storage. To be completed by December 2014. (All projected dates contingent upon drawings, approvals, and contractor status). 3.3.3 Phase 2 Restoration While the school utilizes the Carriage House and Mansion Main Level, restoration of Mansion Second Level and Third Level will be ongoing. At the top of the stairs on the Second Level, guests will be greeted in a comfortable reception area and art gallery. All rooms will be properly restored and preserved to be used as classrooms, office, creative spaces, computer lab, bathrooms, and a guest suite. The Third Level will include a Dance studio, which may also be used as meeting and educational space. Additional rooms will be used as classrooms, creative spaces, study areas, etc. The one room added as a make-shift bedroom may be removed to restore the original floor space intended for the ballroom. To be completed by August 2016. 3.3.4 Phase 3 Restoration The intent is to transform the Carriage House Upper Level into a small performing arts venue with state-of-the-art lighting, sound reinforcement and studio grade sound insulation. Small concerts, intimate stage productions, comedy—a variety of potential uses will be developed for both the Portal School and community. Access to Carriage House Upper Level will 316 be improved as necessary. Any further restoration needed for the two facilities will be addressed in this phase. To be completed by August 2017. 3.4 Tree of Life AGREES TO RESTORE AND PRESERVE THE T.B. MANSION PROPERTIES SUBJECT TO ALL FEDERAL, STATE, AND LOCAL EASEMENTS OR RESTRICTIONS FOR HISTORIC PRESERVATION AND ALL APPLICABLE BUILDING CODES. 4 STATEMENT OF FUNDING We have sufficient funds to obtain ownership of this property, to provide for its ongoing maintenance and preservation, and to properly restore the Carriage House and upper two floors of the Story Mansion. Documentation will be provided to the City of Bozeman at the appropriate time upon request. 5 PURCHASE AND SALE AGREEMENT Tree of Life agrees to enter into good faith negotiations regarding a purchase and sale agreement with the Bozeman City Commission, contingent upon obtaining the appropriate conditional use permit. Signed, (Signature on file) Lisa R. Weaver, President, Tree of Life Ministries Date (Signature on file) Matthew L. Weaver, Vice-President, Tree of Life Ministries Date 317